When a co-owner of real estate or a bank account dies, the surviving owner may assume the property transfers automatically. Sometimes it does. But the result depends on how the property was titled. The ownership type determines whether the asset passes outside probate or enters the deceased owner’s estate.
Common types of co-ownership in Nevada
Nevada recognizes several forms of co-ownership. Each one affects what happens when an owner dies.
Joint tenancy with right of survivorship often allows the deceased owner’s interest to pass to the surviving owner outside probate. For real estate, recording an affidavit of survivorship, sometimes called an affidavit of death of joint tenant and supporting documents can help confirm the survivor’s title.
Tenancy in common gives each owner a separate share. When one owner dies, that share generally passes under their will or Nevada intestacy law. Probate or another legal process may be needed to transfer it.
Community property applies to married couples. Nevada also recognizes community property with right of survivorship. Without that designation, a deceased spouse’s share may need to pass through probate.
Why the title document controls inheritance
Under Nevada law on creating joint tenancy, a joint tenancy generally must appear expressly in the deed. Otherwise, courts treat the property as a tenancy in common.
Bank and investment accounts follow separate rules. A valid payable-on-death beneficiary or right-of-survivorship designation generally allows funds to pass under the account agreement rather than under a will.
When probate or other complications may arise
Even jointly owned property may require probate court proceedings in some cases. If a deed does not establish survivorship rights, the deceased owner’s share may enter their estate. Tenancy-in-common property may also need probate or another legal process before the share transfers.
Outstanding debts can add complications. Whether a creditor can reach the property depends on the ownership type, any liens and the nature of the claim.
Reviewing ownership documents can help prevent delays
Reviewing ownership documents with an estate planning attorney can help clarify how assets may transfer and reduce the risk of delays after a death.